The number of home sales recorded over Canadian MLS Systems decreased by 0.7% on a month-over-month basis in August 2026. Monthly activity has now remained largely unchanged since May, according to a report released Tuesday by the Canadian Real Estate Association.
“Sales activity and price trends were largely unchanged for a fourth consecutive month in August,” said Shaun Cathcart, CREA’s Senior Economist. “What has changed is the broader economic environment, with the Bank of Canada recently warning of rising inflation risks, along with doubts about the durability of recent economic growth. For borrowers, fixed mortgage rates have already increased on higher bond yields. Meanwhile, on the variable rate side, a rate hike is not only back on the table for this year but already priced in by markets. This fresh round of incoming headwinds is expected to dampen the prospects for further housing market momentum heading into 2027.”
August Highlights:
National home sales fell by 0.7% month-over-month.
Actual (not seasonally adjusted) monthly activity came in 6.9% below August 2025.
The number of newly listed properties climbed 3.3% on a month-over-month basis.
The MLS Home Price Index (HPI) was unchanged on a month-over-month basis and was down 3% year-over-year.
The actual (not seasonally adjusted) national average sale price was up 0.6% on a year-over-year basis in August 2026.
New listings rebounded by 3.3% on a month-over-month basis in August 2026, reversing three straight declines earlier in the summer, said CREA.
“The noticeable increase in new supply in August was both broad based across all the largest markets and most apparent towards the end of the month. This suggests sellers were looking to get an early start to the fall market, particularly given how late Labour Day was this year,” said Garry Bhaura, CREA Chair. “For buyers, it will mean the usual seasonal burst of new properties to choose from, but at the same time they also have to contend with a fresh round of economic uncertainty.”
The gain in new supply combined with the small decline in sales in August caused the national sales-to-new listings ratio to ease back to 49.1% compared to 51.1% in July. The long-term average for the national sales-to-new listings ratio of 54.7%, with readings roughly between 45% and 65% generally consistent with balanced housing market conditions, explaIned CREA.
"There were just under 200,000 properties listed for sale on all Canadian MLS® Systems at the end of August 2026, in line with the historical average for that time of the year and just 1.4% above the year earlier level. Overall supply has been more or less sliding sideways since spring 2025," it said.
"There were 4.8 months of inventory on a national basis at the end of August 2026, unchanged for the fourth consecutive month and slightly below the long-term average for the measure of five months. Based on one standard deviation above and below that long-term average, a seller’s market would be below 3.6 months, and a buyer’s market would be above 6.4 months."
The report said the National Composite MLS Home Price Index (HPI) was unchanged from July to August. Prices have remained largely unchanged month-to-month since the spring, marking the longest period of price stability since 2024, when prices were flat throughout the year.
The non-seasonally adjusted National Composite MLS HPI was down 3% compared to August 2025. Year-over-year declines have been shrinking since January, with the August 2026 reading marking the smallest decrease since October 2025. The non-seasonally adjusted national average home price was $668,219 in August 2026, up 0.6% from the same month last year, it added.